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Financial Issues This forum is for discussing any of the financial issues involved in your divorce.

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Old 01-23-2014, 01:24 PM
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Well this 'company' is paying for a lot of people to answer the phone & tell you they can't help you. I will post tomorrow & let you know what the bank has to say.
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Old 01-23-2014, 05:54 PM
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You have a "then and now" pension. It is complicated.

One other thing is, is that it is taxed in YOUR hands, not hers. So she only gets the net amount. Now, her entitlement is small so the tax implications won't be that high anyhow.

I suggest you bite the bullet and just offer her her half gross without any tax implications in one lump sum. I suggest this because the only thing worse than shelling out $2500 is doing so over 10 fracking years and writing a stupid cheque every month. I'd do it just to part ways and never have to deal with her again.
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Old 01-23-2014, 06:20 PM
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I searched around a bit for historical returns, and found that the 'couch potato' portfolios average yearly returns for 10 years are between 6.2 to 6.8 from 2003 to 2013. This is net of management fees. So just tack one more year of the same % (being generous) on to that, gives you 1.065^11 = 1.999. Assuming all gains are tax sheltered, that means the 2003 value would have doubled by 2014.

That's the amount you would remove from your plan - what taxes are taken off (now or later) should be taken from her share.

http://canadiancouchpotato.com/wp-co..._1994-2013.pdf

I can't see any value to using an actuary - the issue is how to determine what % to use, and unless you can get the actual yearly return rates from your pension fund, then you will have to make some assumption - AND get your ex to agree to that assumption.

Last edited by dinkyface; 01-23-2014 at 06:26 PM.
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Old 01-23-2014, 07:50 PM
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Thanks to all of you for your input. I am going to the bank tomorrow & will seek advice there. Right now I am inclined to agree with dinkyface & offer to put $5000 in an RSP for her. If that can't be managed then I will offer $5000 net of taxes. That is a nice round number & would make a nice wedding present for her.
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Old 01-23-2014, 08:09 PM
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Quote:
That is a nice round number & would make a nice wedding present for her.
Awwwww...sounds like you can't wait to marry her off, are you going to be the best man?

Here comes the bride
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Old 01-25-2014, 12:10 AM
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I picked up a form T2220 E from my bank that essentially enables the transfer of funds from my RSP to her RSP. She has to agree to this of course & then that would settle all financial affairs between us. Interestingly enough this does not need to be done before the divorce. I am going to go ahead with the divorce then & once that is final I will complete the transfer.
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Old 01-25-2014, 08:23 AM
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@moremiles.....

That is indeed the right form, and yes there has to be mutual consent to make it happen. This applies in my own personal case as well

T2220 - Transfer from an RRSP or a RRIF to Another RRSP or RRIF on Breakdown of Marriage or Common-law Partnership

***Thanks for dropping by to read this post, have a nice day
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